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Investar Holding Corp. (ISTR)
NASDAQ:ISTR

Investar Holding (ISTR) AI Stock Analysis

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Investar Holding

(NASDAQ:ISTR)

Rating:68Neutral
Price Target:
$23.00
▲(4.45%Upside)
Investar Holding demonstrates solid financial performance and technical strength, supported by strategic corporate actions like the merger. While financial stability is generally strong, attention to cash flow trends is necessary. Positive technical momentum and valuation metrics further bolster the stock's attractiveness.

Investar Holding (ISTR) vs. SPDR S&P 500 ETF (SPY)

Investar Holding Business Overview & Revenue Model

Company DescriptionInvestar Holding Corporation operates as the bank holding company for Investar Bank that provides a range of commercial banking products to individuals and small to medium-sized businesses in South Louisiana. The company offers various deposit products and services, such as savings, checking, money market, and individual retirement accounts, as well as various certificates of deposit; debit cards; and mobile banking services. It also provides commercial real estate loans; commercial and industrial loans, including working capital lines of credit and equipment loans; loans for the construction of commercial projects, and single family residential and multifamily properties; one-to-four family residential real estate lending, such as second mortgage loans; consumer loans, such as secured and unsecured installment and term loans, home equity loans and lines of credit, and auto loans, as well as loans for personal, family, and household purposes. In addition, the company offers cash management products, including remote deposit capture, virtual vault, electronic statements, positive pay, ACH origination and wire transfer, investment sweep accounts, and business Internet banking services. Further, it provides various other banking services, such as cashiers' checks, direct deposit of payroll and social security checks, night depository, bank-by-mail, automated teller machine, interactive teller machines, merchant card, and mobile wallet payment services. The company operates through a network of 24 full service branches. Investar Holding Corporation was founded in 2006 and is headquartered in Baton Rouge, Louisiana.
How the Company Makes MoneyInvestar Holding generates revenue through the interest collected on loans issued to individuals and businesses, which is a primary source of income. Additionally, the company earns money from non-interest income streams such as service charges on deposit accounts, fees for financial services, and other banking-related fees. Investar Holding also benefits from strategic partnerships and investments that enhance its service offerings and market reach, contributing to its overall financial performance.

Investar Holding Financial Statement Overview

Summary
Investar Holding shows a commendable financial standing with robust revenue growth and solid profitability, particularly reflected in its net profit margin. The balance sheet is strong with zero debt, enhancing financial stability. Cash flow management is efficient, ensuring liquidity and operational flexibility. However, attention should be given to the declining EBIT margin to ensure sustained operational efficiency.
Income Statement
75
Positive
Investar Holding has demonstrated a strong revenue growth trajectory, with a noticeable increase from $83 million in 2023 to $144 million in 2024, indicating a healthy growth rate. The gross profit and net income have also shown positive trends. However, the EBIT margin has significantly decreased from 40.24% in 2022 to 1.79% in 2024, presenting a potential area of concern regarding operational efficiency. The net profit margin improved to 14.08% in 2024, suggesting solid profitability, but the decreasing EBIT margin warrants attention.
Balance Sheet
80
Positive
The company's balance sheet reflects a stable financial structure with no total debt in 2024, significantly reducing leverage risks. The equity has increased to $241 million, enhancing the equity ratio to 8.86% of the total assets, which is a positive sign of financial health. The return on equity remains robust at 8.39%, indicating effective utilization of shareholder funds. However, the equity ratio could be improved further to strengthen financial stability.
Cash Flow
77
Positive
Investar Holding demonstrates strong cash flow management with a significant increase in free cash flow from $25 million in 2023 to $32 million in 2024, signaling healthy cash generation capabilities. The operating cash flow to net income ratio remains favorable at 1.61, suggesting efficient conversion of net income to cash. The free cash flow to net income ratio is also strong at 1.61, indicating effective cash flow management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue155.00M156.52M141.06M123.18M107.99M105.93M
Gross Profit88.89M85.89M84.38M105.47M73.38M74.51M
EBITDA29.04M27.50M24.21M48.78M14.90M21.91M
Net Income21.84M20.25M16.68M35.71M8.00M13.89M
Balance Sheet
Total Assets2.73B2.72B2.82B2.75B2.51B2.32B
Cash, Cash Equivalents and Short-Term Investments389.25M34.12M390.20M445.23M452.05M303.78M
Total Debt96.77M101.02M85.08M439.74M135.66M175.00M
Total Liabilities2.48B2.48B2.59B2.54B2.27B2.08B
Stockholders Equity251.74M241.30M226.77M215.78M242.60M243.28M
Cash Flow
Free Cash Flow11.99M15.42M25.18M41.69M30.16M10.16M
Operating Cash Flow12.60M15.93M26.25M42.75M33.48M17.75M
Investing Cash Flow69.82M90.06M-73.49M-350.99M53.40M-148.14M
Financing Cash Flow-80.74M-110.08M38.99M251.46M-25.21M121.07M

Investar Holding Technical Analysis

Technical Analysis Sentiment
Positive
Last Price22.02
Price Trends
50DMA
19.17
Positive
100DMA
18.32
Positive
200DMA
19.52
Positive
Market Momentum
MACD
0.72
Negative
RSI
70.86
Negative
STOCH
92.55
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ISTR, the sentiment is Positive. The current price of 22.02 is above the 20-day moving average (MA) of 19.42, above the 50-day MA of 19.17, and above the 200-day MA of 19.52, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 70.86 is Negative, neither overbought nor oversold. The STOCH value of 92.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ISTR.

Investar Holding Risk Analysis

Investar Holding disclosed 38 risk factors in its most recent earnings report. Investar Holding reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Investar Holding Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$174.54M7.6318.94%
68
Neutral
$216.78M10.039.12%1.96%6.42%24.08%
67
Neutral
$16.89B11.799.73%3.75%11.97%-8.33%
65
Neutral
$178.65M9.1811.31%2.46%6.76%161.37%
61
Neutral
$165.22M14.208.16%3.56%18.74%-16.38%
60
Neutral
$184.22M21.245.66%4.89%16.35%-39.77%
50
Neutral
$157.38M60.651.40%6.93%-5.71%-90.24%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ISTR
Investar Holding
22.02
6.92
45.83%
BCBP
BCB Bancorp
9.17
-0.37
-3.88%
FSFG
First Savings Financial Group
25.82
8.40
48.22%
NKSH
National Bankshares
28.95
2.24
8.39%
FRAF
Franklin Financial Services
36.92
10.37
39.06%
CBNA
Chain Bridge Bancorp, Inc. Class A
26.76
6.01
28.96%

Investar Holding Corporate Events

Private Placements and FinancingM&A Transactions
Investar Holding Announces Merger with Wichita Falls Bancshares
Positive
Jul 1, 2025

On July 1, 2025, Investar Holding Corporation announced its agreement to merge with Wichita Falls Bancshares, Inc., the holding company for First National Bank in Wichita Falls, Texas. This merger, valued at approximately $83.6 million, is part of Investar’s strategy to expand its geographic footprint in Texas. The merger will result in a combined bank with over $4 billion in assets, enhancing services and lending capacity. Additionally, Investar announced a private placement of $32.5 million in Series A Non-Cumulative Perpetual Convertible Preferred Stock to support the acquisition and for general corporate purposes.

The most recent analyst rating on (ISTR) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Investar Holding stock, see the ISTR Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Investar Holding Shareholders Approve Key Proposals
Neutral
May 22, 2025

At the 2025 Annual Meeting of Shareholders held on May 21, 2025, Investar Holding Corporation presented three proposals for a vote. The shareholders elected 11 directors to serve a one-year term, ratified the appointment of Horne LLP as the independent registered public accounting firm for the 2025 fiscal year, and approved the compensation of the company’s named executive officers.

The most recent analyst rating on (ISTR) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Investar Holding stock, see the ISTR Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 02, 2025